Archive for the ‘LeanPost’ Category

LeanPosts

April 27, 2012

The posts you read sometimes take me weeks to research and develop to the point of being finished.

That’s a problem — not the time it takes, but the fact that we all implicitly make an equality:

finished = “can be published now”.

All the posts are interesting long before they are finished.

A better way to decide whether something “can be published now” is to ask:

Has this post reached its minimal viable content?

If the answer to this is “yes”, then it’s time to post.

Once the MVC is reached and gets posted, we then enter into a collaboration between reader and writer to decide whether the post should be continued, or whether it is best to leave alone.

I use Polls to get your feedback and use them to decide where best to invest my limited writing time.

Note

Lean is a keyword (and MVC too) that I first came across through the self-publishing website LeanPub.com.

The term LeanPosts is my invention: an extension of the lean concept to blogging.

What does ‘reduce the balance sheet’ mean?

April 26, 2012

This post is a LeanPost: it will be developed further depending on feedback from my readers.

See my note here on what a LeanPost is.

Many companies are these days talking about reducing the balance sheet.

Another term used is de-leveraging.

In the simplest terms, this just means that a company is reducing the number of loans it has taken out. As a consequence, it will be probably be selling off assets to pay back those loans.

In this post we have a give some details on the borrowing/assets relationship for companies and mention some of the main concepts in corporate accounting that are useful to know if you are on the trading floor.

I always like to think in terms of concrete examples, so for this post I develop a story of setting up a business and show how we naturally come across the concepts of balance-sheet optimization, cost of capital, and other topics which are part of the standard courses in corporate finance.

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